An auction of benchmark Indian government bonds failed to go through completely amid rising interest rates. Bonds maturing in 2032 were being auctioned for the first time on Friday.
Rs 13,000 crore in 2032 bonds were up for auction.
Bids for Rs 7,557 crore accepted at a cut-off yield of 6.54%.
Rs 5,442 crore in 2032 bonds devolved on primary dealers.
Rs 4,000 crore in floating rate bonds and Rs 7,000 crore in 2061 bonds sold at auction.
An auction of the new benchmark bond typically sees strong demand as most investors want to hold it in the portfolio. This drives up prices and pulls down yields, which move inversely. Typically, a new 10-year bond is issued at a coupon rate well below the existing benchmark.
Bids accepted for the 2032 bond were 4 basis points below the prevailing 10-year yield of 5.58%.
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